Markets & Finance

Oracle to Buy Siebel in $5.9 Billion Deal

September 11, 2005

Oracle (ORCL) agreed to acquire Siebel Systems (SEBL) in a deal valued at about $5.85 billion, at $10.66 cash per Siebel Systems share. Separately, the Wall Street Journal reported that Oracle CEO Lawrence Ellison is to pay $100 million to charity to resolve a lawsuit charging that he engaged in insider trading in 2001.

Wachovia (WB) and Westcorp (WES) agreed to a $3.42 billion acquisition deal, priced at 1.2749 Wachovia shares for each Westcorp share. Wachovia aims to expand its auto finance group into a national business. Wachovia also agreed to acquire the 16% of WFS Financial (WFSI) that it does Westcorp not already own for $490 million.

Campbell Soup( CPB) posted 23 cents vs. 14 cents fourth quarter earnings per share on a 4.5% sales rise. Sees fiscal year 2006 sales up by 3% to 4%, and earnings per share up by 5% to 7% from its base of $1.64.

Stifel Financial (SF) agreed to buy all of Legg Mason's Capital Markets business from Citigroup( C) for an amount equal to the net book value of assets being acquired, which are primarily fixed assets and securities inventories, plus a premium of up to $37 million.

GTECH Holdings (GTK) said it has received a non-binding preliminary expression of interest from an unidentified third party regarding the potential acquisition of the company.

Countrywide Financial (CFC) said that while the financial impact of Hurricane Katrina to the company is not determinable at present, it believes it will not be insignificant.

USG Corporation (USG) said that the Internal Revenue Service finalized a regular audit of the company's 2000 to 2002 federal income tax returns. The audit is expected to result in net cash outflows by the end of 2005 of $105 million, $53 million of which is already paid.

With 100% of its oil and gas production unhedged, oil and gas driller W&T Offshore (WTI ) says it is fully benefiting from high commodity prices, which should more than offset the negative impact of Hurricane Katrina on its net income for 2005.

RenaissanceRe Holdings (RNR ) estimated that the negative impact on its results from Hurricane Katrina will be about 1% of aggregate insurance industry losses arising from the hurricane. The insurance company does not expect to meet it 2005 earnings per share guidance, but expects to be profitable.

XM Satellite Radio Holdings (XMSR ) said its Canadian partner, Canadian Satellite Radio, has been approved by Canada's Federal Cabinet to deliver commercial-free music, news, sports, talk, and entertainment to Canadians from coast-to-coast.

PXRE Group (PXT) said its preliminary estimate of its net loss from Hurricane Katrina is about $235 million, after tax. Based on this estimate, the insurance holding company now expects a 2005 net loss of $85 million to $100 million, assuming no additional material catastrophes occur during 2005.

Medarex (MEDX) inked a deal to license its UltiMAb Human Antibody Development System to the biopharmaceutical company ImClone. Medarex will receive license fees, milestone payments from the development of any products that result, plus royalties on commercial sales.

Months before the Food and Drug Administration issued an alert about Guidant's ( GDT) heart devices, the agency received a report from the pharmaceutical company showing that some of the devices were short-circuiting, according to the New York Times.

Delta Air Lines ()" channel="pi"/>) is expected to file for bankruptcy-court protection as early as this week. The company is nearing a deal to keep it flying while it seeks to restructure, according to the Wall Street Journal.

OSI Pharmaceuticals (OSIP) The Food and Drug Administration reportedly finds that the company's pancreatic cancer treatment Tarceva offered no clinically meaningful differences in response rate, but it had higher toxicity.

Forest Oil( FST ) is planning to spin-off its offshore Gulf of Mexico unit to shareholders and immediately thereafter merge it with its Mariner unit. Forest shareholders will receive about 58% of Mariner, which plans to apply to list its shares on the New York Stock Exchange.

Montpelier Re Holdings (MRH) said that the net impact of its Hurricane Katrina and New Orleans flood losses are in the range of $450 million to $675 million, based on private industry insured loss estimates including offshore energy losses in the range of $30 billion to $40 billion.

Nam Tai Electronics (NTE) posted record monthly sales of $67 million for August 2005, topping a previous single-month sales record of $63 million in April 2005.

Bakers Footwear (BKRS) posted 19 cents second quarter earnings per share vs. 10 cents of loss on 13% higher sales at stores that have been open longer than a year.

Topps (TOPP) said that a previously disclosed process to evaluate the possible sale of its confectionery business has been terminated. The company noted levels of interest by prospective purchasers were not commensurate with the Board's valuation of the asset.

Dycom Industries (DY) said it will commence its modified "Dutch Auction" tender offer on Tuesday, Sep. 13, to buy up to 9.5 million common shares at between $18.50 to $21.00 per share. S&P reiterated its hold opinion on the stock.

First Marblehead (FMD) said it expects to close a $1.68 billion securitization of private student loans on or about Oct. 6.

Hector Communications (HCT) said it has received an offer letter from Opportunity Partners L.P. to be acquired.